user
Write a response that appropriately completes the request.

### Instruction:
Predict how the new US minimum wage increase could affect the economy.

### Response:
assistant
The US minimum wage increase could result in higher wages for lower income workers, which could lead to an increase in purchasing power and consequently, economic growth. However, it could also lead to higher labor costs for businesses, which could then be passed on to consumers in the form of higher prices. Additionally, it could lead to increased automation and a reduction in hiring, resulting in a possible loss of jobs.